Samsung Biologics has entered an agreement to acquire Biogen’s stake in the Samsung Bioepis joint venture (JV) for a total consideration of up to $2.3bn.
Under the deal, Biogen is entitled to receive $1bn in cash at closing from Samsung Biologics.
Furthermore, Samsung Biologics will pay the rest $1.25bn in two payments of $812.5m and $437.5m due at the first and second anniversary of the deal closing, respectively.
Biogen will receive payment of up to $50m on meeting some commercial milestones.
Samsung Biologics will gain full ownership of the JV effective on paying $1bn to Biogen.
The company intends to raise nearly $2.5bn by issuing fresh shares, with proceeds to be utilised to support its strategic growth plans, including Samsung Bioepis’ share purchase.
When Samsung Bioepis was formed as a JV in 2012, Biogen invested in a 15% stake in the initial stage.
Biogen had an option to acquire up to 50% less one share of Samsung Bioepis under the original deal, which was exercised in June 2018.
This takeover is anticipated to improve Samsung Biologics’ earnings growth on a consolidated basis, capitalising completely on the growth outlook of Samsung Bioepis.
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